Reply posted by Tim McCulloch on December 16, 2000

What is the generally used policy on deadbeats?

If they are known deadbeats we price the gig so they go to a competitor, or we get paid up front, in full, in cash. See below...

Do you wait for em' to pay? Take them to court? Arrange a mob hit? Give them bad press? What do you guys do?(I like he mob hit thing, but I don't know the local mafia chapter) How is this sort of thing written into a contract?

We have several clients that get production on credit. We bill "Net 10." Most of the time our check is there. We get a 50% deposit when the contract is signed, and (depending of the client) get the balance upon arrival, or before the show. If a client doesn't have the money at the agreed upon time, *I* won’t do the show. The advice in this thread about legal action and bad press apply. You have to attempt to collect the debt before you can sue, how long and how hard depend on your local laws. Be very careful about what you say to others.

Don't "characterize" a non-paying client. Calling them a 'no good, child molesting, non-paying...." will get *you* sued. Stick to the facts, i.e. "he is 30 days past due" or "she didn't have the money at the end of the gig as promised, and I'm still waiting."

As for contract language, you can ask for almost anything...
whether or not its enforceable depends on where you live or work or the contractually stipulated jurisdiction ("this contract is made under the laws
of the State of ________, and in the event of litigation it is agreed that the court of competent jurisdiction is the ______ court of ________.")

If you do sue, remember that judgement is NOT collection, and you could be tied up for years chasing money that looses value every month after judgement. As for the mob hit-- dead clients can't pay. And somebody'd have to owe you huge amounts of money to get you indebted (even if you paid cash) to the mob for a broken leg or arm to 'convince' your client to pay up. It sounds like fun, but you don't wanna go there. Trust me. ;-)

Second thing. A month a go, a rentee dropped my older Peavey board that was out of warranty. He's a great guy and paid for the minor repair. Works like new. But what about the guys who break stuff, and don't pay for replacements? How much of a security deposit is usually asked, and how flexible should our policy be, if the renters are trusted people and they can't afford renatl and security deposits.The reason I ask, is because I'm having a friend of mine(paralegal) draw up a contract.

Our rental contract specifies that equipment be returned in the condition it was given to the client. We test (in front of the client) every major piece of gear in their package; amps, speakers, mics. Most of our "carry-out" rentals are powered mixers, speakers on sticks, etc. so its pretty fast. We have them initial a checklist indicating working status and physical condition (just like renting a truck from Ryder). WE test each with the client when it comes back. Discrepancies are noted on their contract and arrangements for additional monies are then made. Security deposits depend on our comfort factor with that client... we're going to a credit card based system where we will get an "authorization" for up to the total value of the equipment if we think we might need it. If the card won't go thru, we tell the client they can't have the gear.

Our contracts state that all rentals are conditional upon credit approval. Some existing clients are not required to do this. You are the person granting approval, so as long as you don't withold that approval based on race, religion, national origin, etc. you should be okay.

The info on the workers liability a while back sure helped. But what if your friends help you? Can you be held responsible if they get hurt?

Your friends are employees unless it is explicitly agreed they are volunteers, which makes them free to come and go as they please, even not show up. If you require them to do anything, they become employees. You also have to pay them at least minimum wage for every hour or portion thereof that they are "permitted or suffered to work..." And "waiting for work is an integral part of working." (from Dep't of Labor docs) You're damn right you can be held liable for their injuries, and if they do something (or fail to do something) that results in injury or loss to a third party, you're on the hook for that, too.

As for union labor, the major detterent for you is that you probably don't need the minimum number of hands that might be required for a call. And it can seem silly to have (and pay for) a 4 hour call when you need help for 45 minutes. But you build this into your bid. As a seperate line item. You can have your client pay the Local's business agent or the call steward (however they handle it) directly and you won't have to do anything but make the phone call. My experience is that on church gigs and community festivals I need the paid labor on the *out* because the volunteers who were so eager to help set up suddenly have more pressing things to do...

Gotta take my meds now...

Tim Mc